Individual Income Taxation

TOPICS

November 15, 2021

New FAQs cover interplay of unemployment income exclusion and credits

The IRS advises on the effects on tax credits and the Free Application for Federal Student Aid and what taxpayers should do.

November 12, 2021

Changing ways of working call for changing employment and tax policy

Annette Nellen examines possible tax policy implications as more people shed tradition work roles and become “digital nomads.”

November 9, 2021

FAQ guidance on income change reporting for advance child tax credit

The IRS updated its FAQs to explain whether and how to report changes to projected 2021 income for taxpayers receiving advance child tax credit payments.

November 9, 2021

Tax treatment of COVID-19 homeowner relief payments clarified

A revenue procedure clarifies Homeowner Assistance Fund payments are excluded from gross income and gives a safe harbor for computing certain itemized deductions.

November 6, 2021

Infrastructure bill tax provisions include ERC termination

The infrastructure bill that passed the House on Friday and is headed to President Joe Biden’s desk will terminate the employee retention credit early and require broker reporting of cryptoasset transfers.

November 1, 2021

Net investment income tax: C corporation shareholders who are also employees

Chief Counsel Advice found that a taxpayer who was both a shareholder and an employee of the dividend-issuing corporation did not qualify for the exception to the net investment income tax for dividend income derived from a trade or business.

November 1, 2021

Proving employee business expense deductions

Because unreimbursed employee business expenses will be deductible again in 2026, and court cases involving disputes on tax returns for years before 2018 continue to make their way through the courts, knowledge of the details of the unreimbursed employee business expense deduction remains important.

November 1, 2021

Assuming the role of the reviewer with a professor-prepared tax return

Professor-prepared returns with intentional errors give students practice applying reviewing skills that will benefit them in professional interactions once they enter the accounting workforce.

November 1, 2021

Qualified small business stock exclusion: Who’s eligible?

This discussion explores the question of how to determine whether a company is engaged in a qualified trade or business.

November 1, 2021

Tax Court rules on property basis reduction timing

The Tax Court held that a taxpayer was required to reduce the bases of depreciable real properties to calculate the basis adjustment necessary for determining the amount of the QRPBI discharge that may be excluded from income.

November 1, 2021

Theft loss deduction requirements

In a recent case, a taxpayer was unable to prove that a theft had actually occurred or that, if one
had occurred, he had sustained the loss during the taxable year as required by Sec. 165(e).

November 1, 2021

Making the Sec. 83(i) election

Sec. 83(i) allows a qualified employee to defer income inclusion from the exercise of a restricted stock unit or option of the qualified stock of a nonpublicly traded corporation for up to five years from the date of vesting.

November 1, 2021

AICPA recommends QBI improvements

The AICPA recommended in a letter to Senate tax-writing leaders eight ways to improve the deduction for qualified business income under Sec. 199A.

November 1, 2021

Tax treaties do not provide a foreign tax credit against net investment income tax

A U.S. taxpayer living abroad was not entitled to take a foreign tax credit against her net investment income tax based on provisions in the United States–France and United States–Italy tax treaties.

November 1, 2021

Male couple cannot deduct medical expenses related to having a baby

The IRS ruled against the deductibility of medical expenses arising from the couple’s use of gestational surrogacy, in vitro fertilization procedures, and related items.

October 28, 2021

Finding the right capital gains tax strategy for your client

With potential tax hikes looming, CPAs can help clients manage capital gains taxes with the right strategy.

October 15, 2021

IRS addresses taxpayer reliance on FAQs, will save copies of old FAQs

Taxpayers who reasonably rely on FAQs posted by the Internal Revenue Service will have a reasonable-cause penalty defense under a new policy announced by the agency on Friday. The IRS will also keep original versions of FAQs on its site after it updates them.

October 13, 2021